Boeing MAX 10 Ryanair scaled
The final numbers from Airbus and Boeing have been released. Boeing, which released its results earlier today, delivered less than half the number of airplanes that Airbus did in 2024. The final tally is Airbus 766 to Boeing 348. Last year it was a lot closer, with Airbus delivering 735 in 2023 to Boeing’s 611. That is the final telling statistic about Boeing’s turbulent and terrible 2024.
Fortunately, the trend line at Boeing is moving upward, after a slow fourth quarter and introduction of new procedures at the company, training for employees, and changes to the way ‘traveled work’ to correct problems is handled. Progress is being made, with activity after the IAM strike starting slowly as Kelly Ortberg continues to work towards improving the corporate culture.
Expectations for 2025
In 2025, FAA oversight will continue at a high level, and a limit to 737 MAX production to 38 per month is likely to remain in place/ through 2025. We expect the company to slowly build production rates during the year, producing in the low 20s during the first quarter. We expect rates to rise to mid to high 20s in the second quarter. By the third quarter, we will likely see high 20s to low 30s in monthly production. By the fourth quarter, we see delivery rates in the mid 30s to reaching the maximum rate of 38 by year end.
We expect average production for the MAX to reach 30 aircraft in 2025, which would translate to an annual rate of 360 aircraft. Combined with 8-9 deliveries per month from 737 inventory, and deliveries of the 787 that is increasing rate to 5 per month, the 777F, and 767-2C tanker, we expect the company to recover significantly in 2025 to near 2023 levels.
The Bottom Line
What Boeing needs the most is a quiet year without controversies or incidents. For the first two weeks of the year, the company has been out of the headlines, indicating that progress is being made. Let’s hope that progress continues, and Boeing can continue to recover from the failures of 2024. The last thing Boeing needs is another ‘quality escape’ as it rebuilds its reputation for high quality and safe airplanes.
Views: 142
